Restoration Hardware shares plunge after surprise first-quarter loss

Shares of Restoration Hardware Holdings shed 21 percent Thursday after the company released its financial results for the first quarter.

The luxury furnishings retailer posted a loss of 5 cents a share Wednesday after the close, while analysts polled by Reuters expected a profit of 5 cents. Same-store sales also missed expectations.

CEO Gary Friedman said in a statement the team is being pressured "by the continued headwinds in the markets impacted by energy and currency, as well as a general slowdown in the luxury consumer market."

"In addition, the costs associated with RH Modern production delays and investments to elevate the customer experience, the timing of recognizing membership revenues related to the transition from a promotional to a membership model, and a more aggressive approach to rationalizing our SKU count to optimize inventory, are expected to negatively impact our fiscal 2016 adjusted diluted EPS outlook by approximately $0.90 to $1.00," he said.

Still, Friedman added he expects many of the cost and margin related issues to be short-term and that performance should improve in the fourth quarter and accelerate as the firm enters fiscal 2017.